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Sustainability, 11(19), 5379. The literature reveals the importance of the sales team that plays a role in promoting the firm's values. Business model innovation in cultural and creative industries: Insights from three leading mobile gaming firms. Fifteen years of research on business model innovation: How far have we come, and where should we go? Indeed, the framework proposed should seek to identify the current assumptions about the phenomenon and improve them. When companies come together with industry partners, they further raise the playing field for all and pave the way to engage with governments and policymakers to drive action. Journal of Management, 43(1), 200227. Seizing the white space: Business model innovation for growth and renewal. The ten types of stakeholders identified by Bocken etal. So, this activity is complex because the transformation process often involves incorporating heterogeneous metrics besides including various stakeholders needs (Snihur & Wiklund, 2019). Breuer, H., Fichter, K., Ldeke-Freund, F., & Tiemann, I. 19 No. Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). In contrast, the business model represents only the subject of innovation, and previous studies have instead identified it as the vehicle of innovation or a mediating device that can help achieve sustainable innovation. Business model renewal and ambidexterity: structural alteration and strategy formation process during transition to a Cloud business model. The 17 SDGs are a worldwide initiative introduced by United Nations in 2004 to encourage firms to adopt social and environmental behaviors. Following the frameworks logic, we must consider how the value is created and distributed. This research field aims to strengthen the firm's ability to integrate sustainability into the business model to achieve the goal of sustainable development. Journal of Cleaner Production, 135, 1218-e1232. CasadesusMasanell, R., & Zhu, F. (2013). To exemplify this qualitative measurement, we mention the permanence of waste from production flows, the nonexploited co-production and the sub-utilized resources about overworking capacity or insufficient use of skills and knowledge. Does the firm have a sustainability committee? Geissdoerfer, M., Bocken, N. M. P., & Hultink, E. J. Clarifying business models: Origins, present, and future of the concept. Collaboration with government, suppliers, academia, media, external agencies and the community can accelerate innovation to advance sustainable goals. For example, to build his framework, Ludeke-Freud considers the business model a mediating device that can help him achieve sustainable innovation (Ldeke-Freund, 2020). A value mapping tool for sustainable business modelling. Business model innovation from an open systems perspective: structural challenges and managerial solutions. Furthermore, scholars have used BMI as a strategic tool or unit of analysis to study how firms can overcome the competitive threat of a specific industry, such as the creative and cultural industry (i.e. Indeed, the start-up does not transform an existing business model but creates new ones without a history to respect or a tradition to maintain. (2016). Journal of Management and Governance, 25, 133. Managers who intend to avoid value destruction through BMI should assume the sustainable value proposition (Roome & Louche, 2016). Berglund, H., & Sandstrm, C. (2013). Harvard Business Review, 89(12), 117. It must express economic, environmental and social outcomes. Highlights from the tourism and hospitality industry. Business model innovations for electric mobilitywhat can be learned from existing business model patterns? Bucherer, E., Eisert, U., & Gassmann, O. Business model innovation for sustainability. Long Range Planning, 52(3), 305325. Building social business models: Lessons from the Grameen experience. These keywords must be present in the abstract, the title and the papers keywords. Ldeke-Freund, F. (2020). There are several definitionsfor BMI (Table1). The elements of Sustainable Development Goal (SDG) implementation framework, created by the United Nations to guide companies to deepen integration of SDGs into business operations and stakeholder engagement: strategy and governance, operations and stakeholder engagement (United Nations Global Compact, 2020). (2004). Does the firm have a formal stakeholder engagement plan? We have divided the new framework into three sections: value proposition, value creation delivery and value capture. (2019). Organization & Environment, 29(1), 1135. Evans etal., 2017), To have a multi-stakeholder approach that requires systems thinking (Seiffert & Loch, 2005) and. Esselunga is an Italian food and mass retail channel company that contributes to the community's economic, social, cultural and well-being development where it operates. Richardson's classification does not list the business models possible elements, and he only focuses on the value concept and considers the latter only in economic terms. Santos, J., Spector, B., & Van der Heyden, L. (2009). How much are the investments to follow the principles of environmental sustainability? The process of certification generates a B Report that includes several broad categories: governance, workers, community and environment. Following these principles, we have intersected the theoretical concepts (academic sources) with practical tools to identify the framework's critical elements. We have also considered the SDG implementation framework linked to 17 Sustainable Development Goals to deepen the single elements. The sales team also plays a vital role in promoting the firm's values. The ambiguity of the situation also can bring uncertainty. Other authors, instead, introduce taxonomies. Social Responsibility Journal, 16(8), 13771402. Depken, D., & Zeman, C. (2018). Even if the framework applies to all firms that want to change their business model toward sustainability, since the governmental organizations until the private businesses, experts have designed this framework for small and medium-sized enterprises (SMEs) that are less used to dealing with sustainable indicators and metrics. Der Betr, 17, 897e902. This research is subject to certain limitations: we have used a theoretical approach in SBMI, and we have proposed a framework that may be interpreted differently by various researchers. The radicality of organizational change makes the adoption of a sustainable orientation easier for new entrants (start-up) and riskier for incumbents the existing companies that have been operating their business for a long time. Does the firm implement some civic participation practices such as community services and investments, partnerships with non-profit organizations, free use of company facilities to host community events? Report SDG ambition scaling business impact for the decade of action, available at: https://www.unglobalcompact.org/library/5732. (2005), Labb and Mazet (2005), Santos, Spector and Van der Heyden (2009), Amit and Zott (2020) and Yunus, Moingeon and Lehmann-Ortega (2010), BMI is a reconfiguration of the business models elements, of the firms activities or of the value proposition. I call that process business model innovation, We define business model innovation as a process that deliberately changes the core elements of a firm and its business logic, A business model innovation happens when the company modifies or improves at least one of the value dimensions, A BMI can thus be thought of as the introduction of a new business model aimed to create commercial value, At root, business model innovation refers to the search for new logics of the firm and new ways to create and capture value for its stakeholders; it focuses primarily on finding new ways to generate revenues and define value propositions for customers, suppliers, and partners, Business model innovation activities can range from incremental changes in individual components of business models, extension of the existing business model, introduction of parallel business models, right through to disruption of the business model, which may potentially entail replacing the existing model with a fundamentally different one, Business model innovation describes either a process of transformation from one business model to another within incumbent companies or after mergers and acquisitions, or the creation of entirely new business models in start-ups, We define a BMI as designed, novel, and nontrivial changes to the key elements of a firms BM and/or the architecture linking these elements, We define business model innovation as the conceptualisation and implementation of new business models. Sustainable business models: Providing a more holistic perspective. Another theoretical contribution lies in the approach adopted to find the critical areas of the new framework: we have linked theoretical and practical sources. The main question concerns how the firm assesses the impact. Did revenues increase after the business model innovation? (2017). Moreover, the new framework differs from recent academic efforts (Breuer etal., 2018), above all, by the theoretical approach at its foundation. Journal of Business Strategy, 24(5), 1521. We have identified three helpful principles to structure our framework: To focus on value to integrate it into the triple bottom line dimensions (i.e. For example, AUDI aims to make all the activities carbon neutral by 2050, from the supply chain until production. Another element of the framework regards the partnership with all stakeholders. Then we propose a new conceptual and integrative framework as a guideline in the business model transformation toward sustainability. The main action refers to renewing their mission, statements and core values. Journal of Public Affairs, 15(1), 116126. SBMI is a scientific topic that has received significant attention both in the literature of sustainability innovation and business models of the last ten years (Cillo, Messeni Petruzzelli, Ardito, & Del Giudice, 2019). The firm implements the circular economy model through the implementation of remanufacturing, the industrial regeneration of used parts or through the introduction of the Aluminium Closed Loop project: the scraps of the aluminum sheet are isolated from other waste and sent back to suppliers for new processing (Wellbrock, Ludin, Rhrle, & Gerstlberger, 2020). Long Range Planning, 43(23), 262271. Such metrics can assess the last years turnover and net income, the number of new offices, the hiring of new workers, the new investments attracted, the environmental indices and the customer feedback (Breuer, Fichter, Ldeke-Freund, & Tiemann, 2018). By voluntarily joining and meeting a certain level in socially responsible standards, a firm becomes a BCorp. We discuss below the three macro-areas identified. (2010). The present study provides a new knowledge on the SBMI process design by introducing a new framework. A SBMI is characterized by (1) the incorporation into the existing value proposition of sustainable principles or goals, (2) the extension of value creation concept from economic value to shared value (Porter & Kramer, 2011), (3) the consideration of nonfinancial interests in the decision-making process and (4) managers who act as sustainability leaders to promote a new mindset within the whole organization (Stubbs & Cocklin, 2008). Stubbs, W., & Cocklin, C. (2008). Most studies on BMI frame it as a process based on these taxonomies. Finally, the discussion and the conclusion summarize the results and show the study implications and its limitations and directions for future research. Hoboken, New Jersey: John Wiley & Sons. Inserting sustainable ambition into periodical investor relations is relevant to ensure accountability, and the information enables the communication of long-term value generation. Foss, N. J., & Saebi, T. (2017). Moreover, the process of implementing a sustainable business model remains unclear. Then we provided a helpful checklist to interpret the framework. The final search on SCOPUS returned 68 results. How does the firm care about the virtual office environment for remote workers? Schaltegger, S., Hansen, E. G., & Ldeke-Freund, F. (2016). Khanagha, S., Volberda, H., & Oshri, I. We also refer to the process of developing these novel replacements as business model innovation, Specifying a set of business model elements and building blocks, as well as their relationships to one another [] a business model designer can experiment with these blocks and create completely new business models, limited only by imagination and the pieces supplied, A business model innovation changes one or more dimensions of a business model (which are perceived by the authors as product-market combination, the architecture of the value creation, and the revenue model) so that a novel configuration of the elements is created and implemented, Business model innovation is the discovery of a fundamentally different business model in an existing business, Business model innovation is to advance [the] business model [] from very basic (and not very valuable) models to far more advanced (and more valuable) models, Business model innovation is a reconfiguration of activities in the existing business model of a firm that is new to the product service market in which the firm competes, Business-model innovation occurs when a firm adopts a novel approach to commercializing its underlying assets, Business model innovation is about generating new sources of profit by finding novel value proposition/value constellation combinations, The ability to innovate something more core than the core, to innovate the very theory of the business itself. We define sustainable business model innovation (SBMI) as a change in how a firm operates to create positive impacts or reduce negative consequences for the environment and society. Does the firm have a recycling program for the materials used? Business-model innovation: General purpose technologies and their implications for industry structure, Design thinking to enhance the sustainable business modelling process, Sustainable business model innovation: A review, Seizing the white space: Business model innovation for growth and renewal, Water stewardship and corporate sustainability: A case study of reputation management in the food and drinks industry, Business model renewal and ambidexterity: structural alteration and strategy formation process during transition to a Cloud business model, Die Geschaftsmodellinnovations-Matrix: geschaftsmodellinnovationen analysieren und bewerten, Business model innovation in cultural and creative industries: Insights from three leading mobile gaming firms, Business model innovation in video-game consoles to face the threats of mobile gaming: Evidence from the case of Sony PlayStation, Sustainable business models through the lens of organizational design: A systematic literature review, Sustainable business models: Providing a more holistic perspective, Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research, Disruptive innovation: In need of better theory, Quality of code of ethics: An empirical analysis on the stakeholder employee, The ultimate competitive advantage of continuing business model innovation, Business model innovation breakthrough moves, Business model generation: A handbook for visionaries, game changers, and challengers, Clarifying business models: Origins, present, and future of the concept, Communications of the Association for Information Systems, The Big Idea: Creating Shared Value. The core activity is transforming the value proposition toward a sustainable value proposition that allows value creation by considering the needs of customers, shareholders, suppliers, partners, community, society and environment (Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017). A literature and practice review to develop sustainable business model archetypes. The main initiatives implemented last year have focused on three macro-objectives: redistribution of food surpluses, promotion of culture and education, and support for scientific research. The Big Idea: Creating Shared Value. Journal of Cleaner Production, 198, 401416. Presenza, A., Messeni Petruzzelli, A., & Natalicchio, A. Consequently, this could create the basis for future quantitative studies of SBMI, a segment of business model studies that is less important than qualitative empirical studies. Nevertheless, the dynamic vision on how the business model changes to incorporate triple sustainability has received insufficient attention. Does the firm have processes for receiving customer feedback, comments or complaints? About nonacademic sources, we have considered the following principles: The four areas of the B Impact Assessment (BIA) method promoted by Blab, a nonprofit organization: governance, community, environment and workers. Regarding theoretical implications, this study contributes to developing a theory of both BMI and sustainable innovation. We have sought to develop an integrative framework of elements that are easy to investigate to facilitate the BMI process. Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research. The first step is aligning the firms aims with sustainable principles. This study presents a conceptual framework summarizing the several SBM critical dimensions to support the complex process under the SBMI. (2018). This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Sustainable business model innovation: A review. Lantano, Petruzzelli, & Panniello, 2022) or the tourism and hospitality industry (Presenza etal., 2019). Highlights from the tourism and hospitality industry, The business model: An integrative framework for strategy execution, Journeying toward business models for sustainability: A conceptual model found inside the black box of organisational transformation, Toward a theory of business model innovation within incumbent firms, Business models for sustainability: Origins, present research, and future avenues, Systemic thinking in environmental management: Support for sustainable development, Searching for innovation: Product, process, and business model innovations and search behavior in established firms, Conceptualizing a sustainability business model, Business models, business strategy and innovation, Report SDG ambition scaling business impact for the decade of action, Sustainability in the automotive industry, importance of and impact on automobile interiorinsights from an empirical survey, International Journal of Corporate Social Responsibility, Building social business models: Lessons from the Grameen experience, https://doi.org/10.1108/INMR-07-2021-0125, http://creativecommons.org/licences/by/4.0/legalcode, Lemus-Aguilar, Morales-Alonso, Ramirez-Portilla, & Hidalgo, 2019, Presenza, Messeni Petruzzelli, & Natalicchio, 2019, Santos, Spector and Van der Heyden (2009), Yunus, Moingeon and Lehmann-Ortega (2010), Cillo, Messeni Petruzzelli, Ardito, & Del Giudice, 2019, Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017, Schaltegger, Hansen, & Ldeke-Freund, 2016, Wellbrock, Ludin, Rhrle, & Gerstlberger, 2020, Breuer, Fichter, Ldeke-Freund, & Tiemann, 2018, https://www.unglobalcompact.org/library/5732, By business model innovation, we mean business model replacements that provide product or service offerings to customers and end users that were not previously available. Cillo, V., Messeni Petruzzelli, A., Ardito, L., & Del Giudice, M. (2019). Business model innovation: A review of the process-based literature. Conceptualizing a sustainability business model. Sustainability in the automotive industry, importance of and impact on automobile interiorinsights from an empirical survey. Is the firm adopting remote working practices? Business Strategy and the Environment, 27(8), 11591166. Towards systematic business model innovation: lessons from product innovation management. To illustrate, the Salvatore Ferragamos Group considers the well-being of its workers and the internal environment as fundamental elements for its success. Moreover, we included only papers belonging to the subject area Business, Management and Accounting. The database returned 520 results. Another unique aspect that can be derived from the approach adopted is that it links theoretical with practical sources. Despite this complexity, the literature on the sustainable business model (i.e. The renewed purpose should stem from an authentic motivation and passion within the firms organizational culture. For example, we can mention Illycaff, an Italian company operating in the coffee industry, which bases its customer relationship on maximizing the sustainable value created by reducing the environmental impact of products and packaging. Business models, business strategy and innovation. These decisions are critical for progress on any sustainable process from investments toward research and development to capital allocations for new facilities. Which activity has led to savings in economic costs? Sustainable business models through the lens of organizational design: A systematic literature review. In Table2, we have summarized the questions we would include in a possible checklist. Disruptive innovation: In need of better theory. Roome, N., & Louche, C. (2016). Strategy and Leadership, 35(6), 1217. Business models for sustainable innovation: State-of-the-art and steps towards a research agenda. Further activities concern the updating of risk expectations connected with revenue flows. Business model generation: A handbook for visionaries, game changers, and challengers. We have included only papers written in English and published between 2010 and 2021. The FCA (Fiat Chrysler Automobiles) board has adopted a diversity policy as they understand that diversity in the firms composition, in terms of age, gender, experience, work background and nationality, is essential for promoting debate and making balanced decisions. First, one must consider the customer area, carefully observing the impact of products or services on health and wellness, support and satisfied needs (Schaltegger, Hansen, & Ldeke-Freund, 2016). The business model represents the theme of innovation. Another element refers to resources considered essential, such as personnel and the environmental. Communications of the Association for Information Systems, 16(1), 1. Then we have identified the specific knowledge about (1) a firms purpose and governance, (2) stakeholder engagement, (3) customers impact, (4) environmental practices, (5) environmental resources, (6) workers, (7) stakeholders, (8) cost structure, (9) revenue stream and (10) corporate finance. The SBMI also considers the value creation in the carried-out activities and its delivery as eco-social benefits balanced among all the players. Labb, M., & Mazet, T. (2005). The third step regards the search for examples within papers for each framework dimension. Our paper contributes to enriching the literature about BMI and sustainable innovation by adopting the business model dynamic perspective and presenting a new tool helpful in understanding how the business model changes to incorporate triple sustainability. What methods of conserving water resources have been implemented in the firm's offices or factories? Andreini, D., Bettinelli, C., Foss, N. J., & Mismetti, M. (2021). Business model innovation is a widely known topic and one of the most recurring keywords in managerial studies. In the last ten years, the literature on the business model has shifted from the defining aspects to the topic of BMI. We considered the value mapping tool Bocken etal. The new framework differs from some recent academic efforts first of all for its theoretical characteristics: BMI construct and not business model concept is the core of the framework. Indeed, the prior scientific research about this topic offers various reviews (i.e. Journal of Business Strategy, 25(1), 1626. Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2013). Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). From a practical view, the paper can serve as a guideline for corporate reorganization. (2014) proposed that aims to understand the positive and negative aspects of the value proposition of the network of stakeholders (Bocken etal., 2014). United Nations Global Compact (2020). (2022). Richardson, J. (2019). Subject-matter experts consider the SBMI a complex process that changes the core elements of the firms logic to create new value for all their stakeholders. We have made up each dimension by different elements deriving from the literature. Therefore, such a framework reduces resistance to modification of the business model within firms and promotes the commitment of individuals to the BMI implementation. Technological Forecasting and Social Change, 174, 121210. Reporting of sustainable progress requires defining specific metrics (Depken & Zeman, 2018). Journal of Social Entrepreneurship, 7(3), 263288. Are the company's products or processes structured to restore or preserve the environment? Business Strategy and the Environment, 29(2), 665681. (2021) identified five typologies of processes: cognition processes, knowledge-shaping processes, strategizing processes, value creation processes and evolutionary processes. In the end, we have selected 51 papers after reading them in full. With this objective in mind, we have first organized the information into three macro-areas: value proposition, value creation and delivery and value capture. The full terms of this licence maybe seen at http://creativecommons.org/licences/by/4.0/legalcode. Indeed, in the value capture process, firms aim at monetizing the outputs of their activities. The present article is structured as follows: first, we show the existing literature on BMI and SBMI to capture the current data. Journal of Cleaner Production, 45, 919. Business Strategy and the Environment, 26(5), 597608. Does the firm assess or monitor the social and environmental impact of its main suppliers? Business model innovation strategy: Transformational concepts and tools for entrepreneurial leaders. Considering this scenario, we introduce, in the next section, a new helpful framework as a guideline for scholars and academics to theorize the correct business innovation process toward sustainability. (2018), which identifies four types of BMI startup, transformation, diversification and acquisition and by Cavalcante, Kesting and Ulhi (2011) which talks about creation, extension, revision and termination. Regarding academic studies, we must consider the three concepts of value proposed by Richardson (2008), the ten types of stakeholders identified by Bocken, Short, Rana and Evans (2013) in the value mapping tool and the nine building blocks of business model canvas (BMC) proposed by Osterwalder and Pigneur (2010). Fifteen years of research on business model innovation: How far have we come, and where should we go? For example, we can cite the community representing Esselunga, a stakeholder group that influences sustainable practices. Regarding academic studies, we have considered the following principles: The three value concepts proposed by Richardson (2008): (1) the value proposition concerning offers, target customers, differentiation, vision and mission; (2) the value creation and delivery system regarding resources, assets, processes, position in the value network relative to customers, competitors, collaborators and all stakeholders and (3) the value capture system linked to the way to make money. Design thinking to enhance the sustainable business modelling process. This last section includes the qualitative measurement of the impact concerning mitigation of the destroyed value and the value not captured. Does the firm have quality certifications? The framework suggests starting the analysis from the value proposition section made up not only by describing new sustainable value, like existing tools, but also by explaining the governance. Strategic Management Journal, 34(4), 464482. Does the firm have implemented energy efficiency improvement programs, water efficiency improvement projects, or waste reduction programs (including recycling)? The business model represents the subject of innovation, not its vehicle. Lemus-Aguilar, I., Morales-Alonso, G., Ramirez-Portilla, A., & Hidalgo, A. Such a framework is also helpful for practitioners to plan actions at different firms' departments and implement business model transformation. Andreini etal. There are several metrics that firms can use to assess the triple bottom line integration in the new business model. Although there is a broad consensus about the importance of sustainability for firms, the academic studies on how to transform the firm into a sustainable organization remain blurred (i.e. Business models for sustainability: Origins, present research, and future avenues. The business model: An integrative framework for strategy execution.

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